Better, a digital mortgage lender, and Coinbase have funded the first Bitcoin-backed mortgage in the United States, opening a new path for homebuyers who hold wealth in digital assets rather than cash.
The companies said the loan is the first completed transaction under the Fannie Mae-eligible token-backed mortgage program they announced in March 2026, with plans to roll out the product to qualified borrowers across the United States by summer 2026.
The program will initially support Bitcoin and USDC as pledged collateral, allowing eligible buyers to purchase a home without selling their crypto holdings, with the companies planning to add more digital assets as the market matures.
Digital assets move into home lending
The product is designed to address a growing gap between how some buyers build wealth and how the mortgage industry has traditionally assessed readiness for homeownership.
Better said 41 percent of its pre-approved customers meet income and credit requirements but do not have enough cash for a conventional down payment. That challenge comes as affordability pressures continue to delay first-time purchases, with the National Association of Realtors reporting that the median age of first-time homebuyers has reached a record 40, compared with 32 a decade earlier.
“The 30-year fixed mortgage was designed for a generation that kept its savings in a bank account and built equity through a single employer. That’s not the financial reality of millions of qualified buyers today that are building real wealth in digital assets,” Better founder and CEO Vishal Garg said.
The company said the product is meant to widen access for borrowers who can demonstrate financial strength but struggle to meet down payment requirements built around cash savings rather than newer forms of wealth.
“We’re excited to expand access to all qualified borrowers to fix an ongoing issue: buyers who qualify on every measure that matters but cannot clear the down payment hurdle because their wealth isn’t where the system expects to find it,” he added.
Michigan couple closes first loan
The first completed loan went to a married couple in their early 30s from Ann Arbor, Michigan, who had built meaningful savings in digital assets but lacked the cash needed for a traditional down payment.
Instead of selling Bitcoin, potentially triggering capital gains taxes and missing out on any future price gains, they pledged their holdings as collateral and purchased their first home.
“Buying our first home has always been the goal, but I wasn’t willing to give up a decade of investing to get there,” Joe said. “With this mortgage, I didn’t have to choose. We closed on our home and my Bitcoin stayed intact.”
Coinbase backs custody and compliance
Better said Coinbase will support the product’s custody, compliance and operations, citing the exchange’s existing work with retail, government and institutional clients.
The move aligns with Coinbase’s broader push to position crypto as core financial infrastructure, with CEO Brian Armstrong saying after the company’s Q1 2026 earnings that crypto is “superior money” and that the “onchain economy has reached escape velocity,” pointing to growing activity across trading, stablecoins, custody and Base.
